Correlation Between SPDR Barclays and Malteries Franco
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and Malteries Franco at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SPDR Barclays and Malteries Franco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Euro and Malteries Franco Belges Socit, you can compare the effects of market volatilities on SPDR Barclays and Malteries Franco and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SPDR Barclays with a short position of Malteries Franco. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Malteries Franco.
Diversification Opportunities for SPDR Barclays and Malteries Franco
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and Malteries is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Euro and Malteries Franco Belges Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malteries Franco Belges and SPDR Barclays is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SPDR Barclays Euro are associated (or correlated) with Malteries Franco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malteries Franco Belges has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Malteries Franco go up and down completely randomly.
Pair Corralation between SPDR Barclays and Malteries Franco
Assuming the 90 days trading horizon SPDR Barclays is expected to generate 2.73 times less return on investment than Malteries Franco. But when comparing it to its historical volatility, SPDR Barclays Euro is 2.83 times less risky than Malteries Franco. It trades about 0.06 of its potential returns per unit of risk. Malteries Franco Belges Socit is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 57,620 in Malteries Franco Belges Socit on August 29, 2024 and sell it today you would earn a total of 14,380 from holding Malteries Franco Belges Socit or generate 24.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.42% |
| Values | Daily Returns |
SPDR Barclays Euro vs. Malteries Franco Belges Socit
Performance |
| Timeline |
| SPDR Barclays Euro |
| Malteries Franco Belges |
SPDR Barclays and Malteries Franco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Malteries Franco
The main advantage of trading using opposite SPDR Barclays and Malteries Franco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, Malteries Franco can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Malteries Franco will offset losses from the drop in Malteries Franco's long position.| SPDR Barclays vs. Amundi ETF Govies | SPDR Barclays vs. iShares STOXX Europe | SPDR Barclays vs. iShares Global Infrastructure | SPDR Barclays vs. SPDR MSCI World |
| Malteries Franco vs. Grard Perrier Industrie | Malteries Franco vs. Robertet SA | Malteries Franco vs. Thermador Groupe SA | Malteries Franco vs. Piscines Desjoyaux SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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